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Medical Group Management Association. Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis Englewood, CO; 2005.

Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis


A SWOT analysis is an essential tool to develop business and marketing strategies. It is simply a list of
the strengths, weaknesses, opportunities and threats pertaining to your product or service. A SWOT
analysis is best put into a one-page document so you can compare all four variables in one glance. A
SWOT should list only essential items (not a complete, unedited brain dump); and preferably these items
are placed in order of priority.

A narrative can precede the SWOT analysis to introduce the product or service; the analysis can conclude
with a narrative summing up the top issues and provide a rationale for action taken on them in your
business and marketing plans.

SWOT Analysis Grid


Product:
Date:

Strengths Weaknesses

Opportunities Threats

2005 Medical Group Management Association. All rights reserved.


Example of a SWOT Analysis

Background
Product
JETSON Medical (a fictitious organization) is a large distributor of pharmaceuticals, injectables, medical
and surgical supplies and infusion devices to office-based physicians. From a distribution center in
Cleveland, the company provides products to 12,000 regional customers.

Business Strategy
Although originally focused on oncology services, JETSON entered into an aggressive strategy of
diversification and is now a leader in a number of specialty medical fields, including rheumatology,
urology, immunology and nephrology.

Competition
JETSON has five primary competitors: Oncology Supply (owned by Meyers-Briggs), Hillside Healthcare,
Sky Blue Crew and McKesson. The competitors are all public companies. JETSON is a private company.

Position in the Market


Started in 1979, JETSON has about 9 percent of the specialty distribution market of pharmaceuticals in
the region. The companys philosophy is to provide a high level of customer service and low prices.

Target Market
JETSON targets office-based physicians and materials managers in larger organizations. Its products are
for the medical specialties of oncology, dialysis, family practice, urology, infectious disease, internal
medicine, rheumatology and veterinary medicine.

2005 Medical Group Management Association. All rights reserved.


JETSON Medical
SWOT Analysis

Strengths Weaknesses

1. Responds quickly to needs of customers 1. E-commerce not as sophisticated as


2. Responds quickly to changes in prices of competition
pharmaceuticals 2. Competitors (public companies) have more
3. Well-established player in the market with funds to work with -- owner of company
good reputation distributes all profits to the owner, with
4. More flexible than the competition due to minimal funds to new capital expenditures.
private ownership. 3. Technology not up to date
5. Central location in Ohio; easy distribution to 4. Turnover in personnel quite high
Great Lakes region 5. Lack of outside sales force
6. Diversified into a number of medical fields
7. Large customer base

Opportunities Threats

1. Continue to improve customer service 1. Difficult market with stiff price competition
2. Update Web site and add new technologies to 2. New entrants coming into the market
attract additional customers 3. Medicare Prescription Drug Act poses new
3. Diversify further into medical specialty fields problems with pricing
4. Capitalize on strong labor market in Ohio by 4. Competition gets better rebates from
obtaining and retaining the best people pharmaceutical manufacturers as they are
5. Build stronger alliances with drug manufacturers divisions of mega-corporations.
to get higher incentives. 5. Competitors sometimes get better contract
6. Provide more valuable services to customers. prices for oncology group purchasing
organizations and therefore attract more
customers
6. Impact of government intervention on industry
operations

2005 Medical Group Management Association. All rights reserved.


Summary
Price competition and government intervention in price controls represent the most significant drivers in
the wholesale pharmaceutical market. Competitors continually lower prices and the gross margins
continue to erode. It is unknown if Congress will make changes to its 2005 plan for oncologists, as the
Medicare Prescription Drug Act includes further cutbacks to doctors for chemotherapy.

Physicians may decide it is not cost-effective to perform chemotherapy in their offices and send patients
to the hospital. As a specialty distributor, JETSON Medical sells only to office-based physicians, not
hospitals or pharmacies. Accordingly, the changes could affect business.

The new Medicare drug plan has provisions for setting up regional distributors with which doctors must
contract. This is another form of price control and government oversight of sales.

Another important factor is obtaining the best incentive rebate offers from manufacturers to be able to
offer the lowest prices.

A customer survey would help our company determine what attracts and deters physicians and materials
managers from purchasing through JETSON Medical. In this extremely competitive market, service
quality may be a key strategy.

2005 Medical Group Management Association. All rights reserved.